|
By Anthony SOMIAN, Consulting Manager Square Management
In a perfect world with a perfectly designed financial system, we would all work, save money and invest that money in a capital market perfectly priced because prices would reflect all available relevant information. Such a market would be quite stress free, and many ‘legendary’ investment managers (George Soros, Paul Tudor Jones, Stanley Druckenmiller, etc.) would have never amassed a fortune by “beating the market”. This ideal world could actually exist with a constant Efficient Market, that is a capital market running under the theory of Market Efficiency.
Market Efficiency (Investopedia): Market efficiency refers to the degree to which market prices reflect all...
|